Q2 2025 Verizon Communications Inc Earnings Call

Operator: Reporter, 2025 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode, and the call will be open for questions following the presentation. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

Good morning and welcome to Verizon's second quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode and the call will be open for questions following the presentation.

Brady Connor: I would now like to turn the call over to Mr. Brady Connor, Senior Vice President, Investor Relations. Thanks, Brad. Good morning, and welcome to our second quarter 2025 earnings call. I'm Brady Connor, and on the call with me this morning are Hans Vestberg, our Chairman and Chief Executive Officer, and Tony Skiadas, our Chief Financial Officer.

Today's conference is being recorded if you have any objections, you may disconnect at this time.

I would now like to turn the call over to Mr. Brady Connor senior, vice president, investor relations.

Brady Connor: Before we begin, I'd like to draw your attention to our Safe Harbor Statement, which can be found at the start of the investor presentation posted on our investor relations website. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainty. Discussions of factors that may affect future results is contained in Verizon's filings with the FCC, which are available on our Investor Relations website.

Thanks, Brad. Good morning and Welcome to our second quarter 2025 earnings call. I'm Brady Connor. And on the call with me this morning are hands. Vasburg, our chairman and chief executive officer and Tony skiadas our Chief Financial Officer.

Before we begin, I'd like to draw your attention to our Safe Harbor statement, which can be found at the start of the investor presentation posted on our investor relations website.

Information in this presentation, contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties.

Brady Connor: This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website.

Discussions of factors that may affect future results is contained in Verizon's filings with the FCC which are available on our investor relations website.

This presentation contains certain non-gaap Financial measures.

Brady Connor: Earlier this morning, information on our second quarter results and supplemental materials relating to today's call were posted to our investor relations website.

Reconciliations of these non-gaap measures to the most directly comparable. Gaap measures are included in the financial materials posted on our website.

Hans Vestberg: With that, I'll turn it over to Hans. Good morning, everyone, and welcome to our earnings call of the second quarter 2025. Our performance in the first half of the year, highlighted by a strong second quarter, demonstrates that our strategy is working. We remain committed to discipline, execution and customer-centric innovation. We are growing profitable connections and the value of our customer relationships. While we always see opportunities to improve, I am confident in the future of our business. Our financial performance was strong this quarter, with a market-leading wireless service revenue of $20.9 billion, up 2.2% from last year.

Hans: Earlier this morning information on our second quarter, results and supplemental, materials relating to today's call or posted to our investor relations website with that. I'll turn it over to Hans.

Hans: Our performers in the first half of the Year highlighted by a strong second quarter demonstrate that our strategy is working, we remain committed to discipline execution and customer Centric Innovation. We're growing profitable connections, and the value of our customer relationships, what we always see opportunities to improve. I'm confident in the future of our business.

Hans Vestberg: We delivered an adjusted EBITDA of $12.8 billion, up 4.1% year-over-year, setting another record for the best reported quarter and the second consecutive quarter with growth exceeding our guided range for the year. Strong profitability drove free cash flow of $5.2 billion for the quarter. This brings our year-to-date free cash flow to $8.8 billion, an increase of over $300 million compared with the first half of 2024. Our cash flow from operation underscores the strength of our business and provides us flexibility to execute on our capital allocation priorities which remain unchanged. As a result, we continue to lead the industry with a nation's best network.

Our financial performance was strong. This quarter with a market leading wireless service revenue of 20.9 billion dollars up to 2.2% from last year.

Hans: We delivered adjusted a beta of 12.8 billion up 4.1%. Year-over-year setting another record for the best reporter quarter and the second consecutive quarter with growth exceeding. Our guided range for the year,

Hans: Strong profitability growth, free cash flow of 5.2 billion dollars for a quarter. This brings our year to date free cash flow to 8.8 billion dollars an increase of over 300 million dollars compared to the first half of 2024.

Our cash flow from operation underscores, the strength of our business and provide us flexibility to execute on our Capital, allocation priorities, which remain unchanged.

Hans Vestberg: Our segmented market strategy, which is a diverse portfolio of offerings, is resonating with our customers. Our customer first offerings such as MyPlan, MyHome, and the new MyBizPlan, along with our Best Value Guarantee, draw significant sales momentum. We're also deploying AI-powered innovations to enhance the customer experience on the nation's best networks. On the infrastructure front, our execution is outpacing our targets. CBAM deployment is ahead of schedule. Our fixed wireless base has surpassed 5 billion subscribers, and our fiber build is tracking ahead of its plan. This demonstrates disciplined execution across our entire portfolio. Given our financial performance and the momentum in the first half of the year, we are raising our full-year guidance for adjusted EBITDA and adjusted EPS.

Hans: As a result, we continue to lead the industry with a nation's best network or segmented Market strategy which is diverse portfolio of offerings is resonating with our customers.

Our customer first offering such as my plan, my home, and the new my business plan along with our best value guarantee draw significant sales, momentum. We're also deploying AI, powered Innovations to enhance the customer experience on the nation's best network.

Hans Vestberg: We're also raising our guidance for free cash flow for the year, driven by our strong cash flow from operations, and further supported by the positive impact from the tax reform.

Tony Skiadas: Tony will provide you with more details shortly.

Hans: On the infrastructure front or execution is outpacing. Our targets cban deployment is ahead of schedule or fixed wireless base has surpassed 5 billion subscribers. And our fiber build is tracking ahead of his plan. This demonstrate disciplined execution, across our entire portfolio, given our financial performance and the momentum, in the first half of the year, we are raising our full year guidance for adjusted, the beta and adjusted EPS. We're also racing our guidance for free cash flow for the year driven by our strong cash flow from operations and further supported by the positive impact from the tax reform.

Hans Vestberg: Now, let's turn to our operational performance. In the second quarter, we delivered over 300,000 net additions across our mobility and broadband platforms. In mobility, we delivered year-over-year improvements in the combined postpaid and core prepaid phone net ads, including the fourth consecutive quarter of subscriber growth in core prepaid. The wireless market remains competitive, and we continue to take a strategic and segmented approach, maintaining our financial discipline. As expected, postpaid phone churn remained elevated this quarter, reflecting the lingering effects of our pricing actions and ongoing pressure from federal government accounts. We're actively focused on improving retention by strengthening our value propositions and leveraging our AI-powered customer experience innovation.

Tony: Tony will provide you with more details shortly.

Tony: Now, let's turn to our operation performance. In the second quarter, we delivered over, 300,000 net. Additions across our mobility and Broadband Platforms in Mobility. We deliver year-over-year improvements in the combined postpaid, and core prepaid phone. Net ads, including the fourth consecutive quarter of subscriber growth in core prepaid.

Tony: The wireless Market remains competitive and we continue to take a strategic and segmented. Approach. Maintaining our financial discipline as expected, postpaid function remained elevated. This quarter reflecting the lingering effects of our pricing actions and ongoing pressure from federal government accounts.

Hans Vestberg: On upgrades, after being down year-over-year for eight out of the last nine quarters, we saw an uptick in the second quarter driven by our best value guarantee. We continue to expect mid-single-digit growth in upgrade activity for the full year. Our dual fixed wireless access and fiber broadband strategy continues to drive market share gains. A key highlight is fixed wireless access which surpassed the 5 million subscribers milestone, keeping us firmly on the track to achieve our goal of 8 to 9 million subscribers by 2028. We achieve robust broadband growth even as our C-band build-out expands into less dense markets and despite the softer move environment in our FIOS footprint.

Tony: We're actively focused on improving retention by strengthening our value propositions and leveraging, our AI powered customer experience Innovations.

On upgrades of the being down year over year for 8 out of the last 9 quarters we saw an uptick in the second quarter driven by our best value guarantee. We continue to expect mid single digit growth in upgrade activity for the full year.

Hans Vestberg: We continue to scale our private network business, winning a landmark deal to deploy multiple private 5G networks across the SAMS Freeport. This network will serve as a technology foundation for one of the UK's busiest commercial corridors, fueling a multi-billion dollar regeneration project with advanced capabilities like AI and real-time logistics. Our AI Connect offerings are also generating strong interest. Our sales funnel has nearly doubled to $2 billion since launch earlier this year. While these are often complex deals with longer sales cycles, we're actively engaged in several sizable opportunities. This growth highlights a surging demand for high bandwidth fiber capacity and diverse routes, both lead and dark fiber, to serve different customer needs.

Tony: For dual fixed wireless access and fibre Broadband. Strategy continues to drive market, share gains. A key highlight is fixed wireless access which surpassed the 5 million subscribers Milestone, keeping us firmly on the track to achieve our goal of 8 to 9 million subscribers by 2028, which is robust Broadband. Growth, even as our C band build out expands in the left dense markets. And despite the softer movement in our FiOS footprint,

Tony: We continue to scale, our private Network business winning a landmark deal to deploy multiple private fire in the networks across the Sam's free Port. This network will serve as a technology foundation for 1 of UK's BCS commercial corridors. Fueling a multi-billion dollar regeneration project with Advanced capabilities like Ai and real time Logistics.

Tony: Our AI connect offerings are also generating strong interest or sales funnel has nearly doubled to 2 billion dollars since launched earlier this year.

Iable opportunities.

This growth highlights a surging demand for high bandwidth, fiber capacity, and diverse Roots, both lit and dark fiber to serve different customer needs.

Hans Vestberg: As AI transitions from centralized training to widespread real-time application, compute power at the network edge becomes essential. Our existing infrastructure is uniquely positioned to support this evolution. Our network is our key differentiator, consistently delivering top performance. This quarter, J.D. Power once again recognized Verizon for the best network quality, and RootMetrics' first Hoffield 2025 awards named us the nation's best, fastest, and most reliable 5G network. We're building on this advantage every day. Our C-band deployment is ahead of schedule and on track to cover 80 to 90% of planned sites by year-end, with nearly all sites now stand-alone capable.

Tony: As AI transitions from centralized training to widespread real-time application compute power. At the network, Edge becomes essential our existing infrastructure is uniquely positioned to support this evolution.

Our network is our key differentiator, consistently delivering top performance this quarter JD Power once again recognized Verizon for the best network, quality, and route metrics. First half filled 2025 Awards named as the nation's best fastest, and most reliable 5G Network.

Hans Vestberg: Our fiber build is tracking ahead of plan and we're positioned to deliver 650,000 incremental passings this year. Meanwhile, the regulatory approval process for our pending acquisition of Frontier is progressing as planned. We're encouraged by Frontier's performance and look forward to closing the transaction to further accelerate our fiber expansion.

We're building on this Advantage every day. Our semen deployment is ahead of schedule and on track to cover 80 to 90% of plan sites by year end with nearly all Sites. Now Standalone capable our fiber build is tracking a head of plan and we're a position to deliver 650,000 incremental passings this year.

Hans Vestberg: As we near the closing of Frontier acquisition, we will provide a comprehensive update on our strategy, broadband expansion, and capital allocation considering all stakeholders.

Hans Vestberg: We look forward to providing an update in the next few months.

Tony Skiadas: With that, I turn it over to Tony to go into the financials in more detail. Thanks, Hans, and good morning. The first half of the year reaffirms the strength of our business, highlighting the effective execution of our discipline strategy and significant progress towards achieving our financial goals. As a leading provider of essential connectivity across the U.S., we are committed to offering the best value and delivering the best service and customer experience within the industry. we are focused on driving wireless service revenue and adjusted EBITDA growth and robust free cash flow. The second quarter demonstrated our ability to deliver strong financial results even in a period of elevated promotional activity and broad economic uncertainty.

Tony: Meanwhile the regulatory approval process for our pending acquisition of Frontier is progressing as planned. We're encouraged by Frontiers performance, and look forward to closing the transaction to further, accelerate our fiber expansion, as we near the closing of Frontier acquisition, we will provide a comprehensive update on our strategy Broadband expansion and capital. Allocation considering all stakeholders. We look forward to providing an update in the next few months with that. I'll turn it over to Tony to go into the financials in more detail.

Tony: Thanks hands and good morning.

Tony: The first half of the year reaffirms, the strength of our business highlighting the effective execution of our discipline strategy and significant progress towards achieving our financial goals.

Tony: As a leading provider of essential connectivity across the us, we are committed to offering the best value and delivering the best service and customer experience within the industry.

Tony: We are focused on driving wireless service revenue and adjusted ebit growth and robust, free cash flow.

Tony Skiadas: We remain focused on high-quality, profitable growth, recognizing that volume growth is only valuable when aligned with our disciplined financial framework. Our goal is to improve volumes year over year, but we will not do this at the expense of delivering on our three key financial priorities. This past quarter, we achieved strong sales, focusing on high-quality customers without overspending for growth. Even with public sector challenges and ongoing consumer post-paid phone churn pressure, we maintained our financial discipline. Within Consumer, second quarter postpaid phone gross additions were up sequentially and year-over-year. Our sales execution remains strong, leveraging our attractive value proposition, including the recent launch of the Best Value Guarantee.

Second quarter, demonstrated our ability to deliver strong financial results, even in the period of elevated, promotional activity and Broad economic uncertainty.

We remain focused on high-quality profitable growth. Recognizing that volume growth is only valuable when aligned with our discipline Financial framework.

Tony: Our goal is to improve volume zero over year that we will not do this at the expense of delivering on our 3 key financial priorities.

Tony: This past quarter, we achieved strong sales focusing on high-quality customers without overspending for growth. Even with public sector challenges and ongoing consumer post-paid phone, Sherm pressure. We maintained our financial discipline.

Within consumer second quarter, postpaid phone, gross editions were up sequentially and year-over-year.

Tony Skiadas: As expected, we saw the residual effects of our first quarter pricing actions impact our second quarter consumer postpaid phone churn. Additionally, we continue to see elevated competitor promotional activity. As a result, second quarter consumer post-paid phone churn remained consistent with the first quarter at .90%. We have taken a series of actions to address our elevated churn. On June 24th, we launched initiatives designed to improve the customer experience, including leveraging AI for more personalized support. In addition, we continue to enhance our value proposition and build customer loyalty through the Best Value Guarantee. We provide exclusive access to the best events and experiences and our Refresh app helps customers maximize the value of their plans.

Tony: Sales execution remains strong leveraging, our attractive value proposition, including the recent launch of the best value guarantee.

Tony: As expected, we saw the residual effects of our first quarter pricing actions impact our second quarter, consumer post-paid phone insurance.

Tony: Additionally, we continue to see elevated competitor promotional activity.

As a result, second quarter consumer post-paid, phone, insurance remain consistent with the first quarter at that 90%.

We have taken a series of actions to address our elevated churn.

Tony: On June 24th. We launched initiatives designed to improve the customer experience, including leveraging AI for more personalized support.

Tony: In addition, we continue to enhance our value proposition and build Customer Loyalty through the best value guarantee.

Tony: We provide exclusive access to the best events and experiences and our refresh app, helps customers, maximize the value of their plans.

Tony Skiadas: Mobility phone net ads, which includes both consumer and business retail post-paid, as well as core prepaid, were $16,000 for the second quarter. This represents an improvement of $25,000 from the prior year period. Consumer post-paid phone net losses totaled $51,000 for the second quarter, compared to $109,000 net losses in the prior year period as we benefited from strong gross assets. Verizon Business delivered 42,000 phone net ads in the second quarter, compared with 135,000 net ads in the prior year period. A significant majority of the year-over-year decline was driven by the public sector business. Though we anticipate public sector pressures to persist in the second half of the year, we expect the impact to subside towards the end of the year.

Tony: Mobility phone at ads, which includes both consumer and business. Retail post-paid as well as corporate paid where 16,000 for the second quarter.

Tony: This represents an improvement of 25,000 from the prior year period.

Consumer postpaid phone, net losses. Total 51,000 for the second quarter compared to 10900, net losses and the prior year period, as we benefited from strong gross ads.

Tony: Verizon business delivered. 42,000 phone, net adds in the second quarter compared with a 135,000 that adds in the prior year period.

Significant majority of the year-over-year. Decline was driven by the public sector business.

Tony: Though we anticipate public sector pressures to persist in the second half of the year, we expect the impact to subside towards the end of the year.

Tony Skiadas: Consistent with our wireline approach, we continue to remain disciplined and not pursue low-margin wireless business or overpay for value. We remain confident that the team has the tools to execute effectively in the current environment and deliver healthy volumes for the full year 2025. Corp prepaid net additions for $50,000 for the quarter, an improvement of $62,000 from the prior year period. This marks four consecutive quarters of positive core prepaid net ads reflecting the strong execution of the team. The Visible, Total Wireless, and Straight Talk brands continue to perform well and are progressively building a high quality business.

Tony: Consistent with our wire line approach, we continue to remain disciplined and not pursue low. Margin Wireless business or overpay for volumes.

Remain confident that the team has the tools to execute effectively in the current environment and deliver healthy volumes for the full year of 2025.

Tony: Core prepaid. Net additions were 50,000 for the quarter and Improvement of 62,000 from the prior year period.

This marks 4 consecutive quarters of positive core. Prepaid. Net adds reflecting the strong execution of the team.

The visible total Wireless and Straight Talk Brands continue to perform well and are progressively building a high quality business.

Tony Skiadas: Overall, core prepaid ARPU rose above $32, and we have now reached an inflection point where after four quarters of volume growth, we expect prepaid to positively contribute to wireless service revenue growth for the remainder of the year. Turning to total wireless post-paid upgrades, we saw a 14% increase in the first half of the year as compared to the same period of 2024. This result was driven by a healthy initial uptake of our Best Value Guarantee Program, which is an investment in our high-quality customer base. As Hans said earlier, we continue to expect upgrade activity to increase by a mid-single-digit percentage in 2025 as compared to 2020.

Tony: Overall, core prepaid, rpu rows, above 32 and we have now reached an inflection point where after 4 quarters of volume growth, we expect prepaid to positively contribute to wireless service Revenue growth for the remainder of the year.

Turning to Total Wireless post-paid upgrades. We saw 14% increase in the first half of the year as compared to the same period of 2024.

This result was driven by a healthy initial uptake of our best value guarantee program which is an investment in our high-quality customer base.

Tony: As Han said earlier we continue to expect upgrade activity to increase by a mid single digit percentage in 2025 as compared to 2024.

Tony Skiadas: Moving on to broadband, we delivered 293,000 net additions in the quarter. We are taking broadband share and see strong demand for both our fiber and fixed wireless access offerings, even with seasonal impacts and a softer move environment as compared to prior years. With Fixed Wireless Access, we deliver 278,000 net ads for the quarter, growing the base to more than 5.1 million subscribers. FWA demand remains strong and we are on track to deliver our goal of 8 to 9 million FWA subscribers by 2028. Fios internet net ads for the second quarter were 32,000 versus 28,000 in the prior year period.

Tony: Moving on to broadband, we delivered 293,000, net, additions in the quarter.

We are taking Broadband, share and see, strong demand for both, our fiber and fixed wireless access offerings, even with seasonal impacts, and the softer movement as compared to Prior years.

Tony: In fixed wireless access. We deliver 278,000 net ads for the quarter growing. The base to more than 5.1 million subscribers.

Tony: Fw8 demand remains strong and we are on track to deliver our goal of 8 to 9 million. Fwa subscribers by 2028

Tony: FIOS internet, net apps for the second quarter. Were 32,000 versus 28,000 in the prior year period.

Tony Skiadas: Fios provides customers with industry-leading connectivity and delivers high customer satisfaction reflected in both robust ARPU and consistently low churn rate. We are expanding our Fios footprint and remain on track to deliver 650,000 new passings in 2025.

Tony: FiOS provides customers with industry-leading connectivity and delivers High customer satisfaction and reflected in both robust rpu and consistently low churn rates.

Tony Skiadas: As we talk about fiber, let me provide a brief update on the pending Frontier transaction. The team is working through the necessary steps to complete the acquisition and we remain on track for an early 2026 close. We have received regulatory approvals from 8 states, as well as the FCC and DOJ, and are productively engaged with the remaining state regulatory agencies. Based on Frontier's publicly reported results, the company continues to perform extremely well and remains on track with their fiber expansion goals. Our integration planning efforts are well underway and we anticipate a smooth transition upon the deal closing.

Tony: We are expanding our files footprint and remain on track to deliver 650,000, new passings in 2025.

As we talk about fiber, let me provide a brief update on the pending Frontier of transaction.

Tony: The team is working through the necessary steps to complete the acquisition and we remain on track for an early 2026 close.

Tony: We have received regulatory approvals from 8 States as well as the FCC and doj and our productively engaged with the remaining state regulatory agencies.

Tony: Based on frontier's publicly reported results. The company continues to perform extremely well and remains on track with their fiber expansion goals.

Tony Skiadas: We are looking forward to having Frontier's assets serve as an important catalyst for our fiber expansion and broadband growth acceleration.

Tony: Our integration planning efforts are well underway. And we anticipate a smooth transition, upon the deal closing.

We are looking forward to having Frontiers asset serve as an important Catalyst for our fiber expansion and Broadband growth acceleration.

Tony Skiadas: Turning to our financial results, we delivered another strong quarter. Second quarter consolidated revenue reached $34.5 billion, up 5.2% year over year. This result was driven by solid wireless service revenue and a more than 25% increase in wireless equipment revenue. Service and other revenue rose 1.6%. Total wireless service revenue reached $20.9 billion in the second quarter, a 2.2% increase year over year. Growth was driven by consumer ARPA, which rose 2.3% year over year. We realize benefits from recent pricing actions, expansion of fixed wireless access, and increased revenue from perks and other adjacent services. Our robust park offerings continue to grow at a steady pace, keeping us on track to achieve our goal of 15 million parks by year-end and providing a healthy contribution to service revenue.

Turning to our financial results. We delivered another strong quarter.

Tony: Second quarter, Consolidated, Revenue reached 34.5 billion up 5.2% year-over-year.

Tony: By solid wireless service revenue, and a more than 25% increase in wireless equipment Revenue.

Tony: service and other Revenue roads 1.6%

Total wireless service Revenue. Reached 20.9 billion. In the second quarter, a 2.2% increase year-over-year.

Tony: growth was driven by consumer arpa which rose 2.3% year-over-year,

We realized benefits from recent pricing actions expansion, and fixed wireless access and increased revenue from Perks and other adjacent services.

Our robust perk offerings. Continue to grow at a steady Pace, keeping us on track to achieve our goal of 15 million perks by year end, and providing a healthy contribution to service Revenue.

Tony Skiadas: In addition, prepaid revenue has reached a turning point and was flat in the second quarter compared to the prior year period. We expect prepaid to positively contribute to wireless service revenue growth in the second half of the year. Overall, we are well positioned for continued service revenue growth with healthy underlying customer economics. The consolidated adjusted EBIT in the quarter was $12.8 billion, which is the highest we have ever reported, and an increase of 4.1% compared to the prior year period. Wireless service revenue growth, coupled with the benefits from cost savings initiatives, more than offset the impact from the elevated upgrade activity.

Tony: In addition, prepaid Revenue has reached a turning point and was flat in the second quarter compared to the prior year period.

Tony: We expect prepaid to positively contribute to wireless service Revenue growth in the second half of the year.

Tony: Overall we are well positioned for continued service, Revenue growth with healthy, underlying customer economics.

Tony: Consolidated. Adjusted ebit in the quarter was 12.8 billion which is the highest we have ever reported and an increase of 4.1% compared to the prior year period.

Tony: Wireless service Revenue growth coupled with the benefits from cost savings initiatives. More than offset the impact from the elevated upgrade activity.

Tony Skiadas: Through the first half of 2025, both wireless service revenue and adjusted EBIT are up nearly $1 billion from the prior year, reflecting strong operating leverage. Within that result, the business segment EBITDA has now grown for three consecutive quarters on a year-over-year basis. From a cost perspective, our voluntary separation program is now complete, generating substantial savings. In addition, we're actively pursuing opportunities within our legacy business. These include copper decommissioning and savings from the Managed Services Initiative within our business segment, among other cost efficiency programs. Adjusted EPS was $1.22 in the quarter, up 6.1% year-over-year, primarily due to the strength in adjusted EBITDA.

Tony: through the first half of 2025, both wireless service revenue and adjusted ebit are up nearly 1 billion dollars from the prior year, reflecting strong operating Leverage

Within that result, the business segment, EA has now grown for 3 consecutive Quarters on a year-over-year basis.

From a cost perspective. Our voluntary separation program is now complete generating substantial savings.

In addition, we're actively pursuing opportunities within our Legacy businesses.

Tony: These include copper decommissioning and savings from the managed Services initiative within our business segments among other cost efficiency programs.

Tony: Adjusted EPS was a122 in the quarter up 6.1%. Year-over-year primarily due to the strength and adjusted Ava.

Tony Skiadas: Turning to our cash flow summary, cash flow from operating activities for the first half of the year was $16.8 billion, up more than 1% compared with the same period a year ago. CapEx for the first half of 2025 came in at $8 billion, compared to $8.1 billion in the prior year period. We continue to realize efficiencies in our C-band deployment and Fios expansion, enabling us to effectively meet or exceed our network goals well within our capital budget. For the first half of the year, the net effect of cash flow from operations and CapEx resulted in free cash flow of $8.8 billion, an increase of 3.6 percent compared to the same period a year ago.

Tony: Turning to our cash flow summary cash flow from operating activities for the first half of the year was 16.8 billion up more than 1% compared with the same period a year ago.

Capex with the first half of 2025 came in at 8 billion dollars compared to 8.1, billion dollars in the prior year, period, we continue to realize efficiencies in our CB band deployment and file 6 expansion, enabling us to effectively meet or exceed our Network goals well within our capital budget.

Tony Skiadas: Net unsecured debt at the end of the quarter was $116 billion, a $6.9 billion improvement year over year. In the first half of the year, our debt reduction was offset by non-cash mark-to-market adjustments. Our net unsecured debt to consolidated adjusted EBITDA ratio was 2.3 times at the end of the quarter, a 0.2 times improvement year-over-year, and in line with the prior quarter. We continue to make progress towards our long-term leverage target ahead of the closing of the frontier transaction. Our balance sheet remains a significant strength of our organization. Notably, we have under $700 million in unsecured debt maturities remaining in 2025.

Tony: For the first half of the year, the net effect of cash flow from operations and capex. Resulted in a free cash flow of 8.8 billion, an increase of 3.6% compared to the same period a year ago.

Net unsecured debt, at the end of the quarter was 116 billion dollars to 6.9 billion Improvement year-over-year.

Tony: In the first half of the Year, our debt reduction was offset by non-cash mark-to-market adjustments.

Tony: Our net unsecured debt to Consolidated. Adjusted ebit ratio was 2.3 times at the end of the quarter, a 0.2 times Improvement, year-over-year and in line with the prior quarter.

Tony: We continue to make progress towards our long-term leverage Target ahead of the closing of the frontier transaction.

Tony Skiadas: We will continue to focus on reducing debt ahead of completing the Frontier transaction. As Hans mentioned earlier, our capital allocation framework remains unchanged. We will continue to strategically invest in the business, enhancing our mobile and broadband networks. report a healthy and growing dividend and paying down debt towards their long-term leverage target. As we've mentioned previously, we'll consider buybacks once we reach our leverage target.

Tony: Our balance sheet remains a significant strength of our organization. Notably we have under 700 million dollars in unsecured debt maturities remaining in 2025

Tony: We will continue to focus on reducing debt ahead of completing the frontier transaction.

Tony: As Hans mentioned earlier, our Capital allocation framework remains unchanged.

We will continue to strategically invest in the business. Enhancing our mobile and Broadband Networks.

Tony: Support a healthy and growing dividend and paying down. Debt towards our long-term, leverage Target.

Tony Skiadas: Our strong operational execution in the first half of the year, coupled with favorable tax reform, gives us the confidence to increase our guidance for the full year. Given the strong adjusted EBITDA performance in the first half of the year, we are increasing our full-year guidance to 2.5% to 3.5% growth, an increase of approximately $125 million at the mid-term. We are increasing our guidance for adjusted EPS growth to a range of 1 to 3 percent to reflect the new adjusted EBITDA outlook. We are raising our 2025 free cash flow guidance to a range of $19.5 billion to $20.5 billion.

Tony: as we've mentioned previously, we will consider BuyBacks once we reach our leverage Target,

our strong operational execution, in the first half of the Year. Coupled with favorable tax reform gives us the confidence to increase our guidance, for the full year.

Given the strong adjusted. EBA performance. In the first half of the year, we are increasing our full year, guidance to 2.5 to 3.5% growth, an increase of approximately 125 million at the midpoint,

We are increasing our guidance for adjusted EPS growth to arrange of 1 to 3% to reflect the new adjusted IBA Outlook.

Tony Skiadas: The increase is driven by an estimated benefit of $1.5 billion to $2 billion from the recently enacted tax legislation as well as the disciplined operational execution that drove our strong adjusted EBITDA and free cash flow performance in the first half of the year. Our wireless service revenue and CapEx guidance remains unchanged. As we get closer to the closing of the Frontier transaction, we expect to provide an update on our broadband plans as well as our capital allocation strategy.

Tony: We are raising our 2025 free cash flow guidance to a range of 19.5 billion to 20.5 billion.

The increase is driven by an estimated benefit of 1.5 billion to 2 billion dollars from their recently, enacted tax legislation as well as the disciplined operational execution, that drove our strong adjusted EA and free cash flow performance in the first half of the year.

Tony: Our wireless service revenue and capex guidance remains unchanged.

Hans Vestberg: In summary, we have a resilient business model with a high quality customer base and continue to execute well in both mobility and broadband. Our second quarter financial performance reflects our disciplined approach to growth and we are well positioned to deliver on our improved outlook in the second half of the year.

As we get closer to the closing of the frontier transaction, we expect to provide an update on our Broadband plans as well as our Capital allocation strategy.

Tony: In summary we have a resilient business model with high-quality customer base and continue to execute well in both mobility and broadband.

Hans Vestberg: With that, I will turn the call back over to Hans. Thank you, Tony. Our strong first half results reaffirm our confidence in Verizon's strategy. Our strategic execution and the ongoing momentum across our business underpin our decision to raise full-year guidance. Our focus remains clear. We are committed to growing wireless service revenue, expanding adjusted EBITDA, and generating strong free cash flows.

Tony: Our second quarter financial performance, reflects our disciplined approach to growth and we are well positioned to deliver on our improved Outlook in the second half of the year.

Hans: With that, I will turn the call back over to Hans.

Hans: Thank you Tony or strong. First, half results, reaffirm or confidence. In Verizon strategy.

Hans: Or strategic, execution, and the ongoing momentum across our business on the pin or decision to raise full year guidance.

Hans Vestberg: We will achieve this through three key priorities. First... Building on the network leadership to create compelling customer offerings that accelerate growth in our mobility and broadband businesses. Secondly, maintaining operational excellence and financial discipline across the organization. Thirdly, scaling our next generation platforms from capturing new enterprise opportunities with private networks to enabling AI at scale and unlocking new revenue streams from our existing assets. The opportunities ahead are significant and the pending frontier acquisition will accelerate our fiber strategy. Verizon's unique market position and the essential nature of our services are fundamental to empowering individuals, businesses and society.

Our Focus remains clear. We're committed to Growing wider service Revenue expanding adjusted beta and generating strong free, cash flow.

Hans: We will achieve this truth 3 key priorities first.

Building on the network leadership to create compelling, customer offerings, that accelerate growth in our mobility and Broadband businesses.

Hans: Secondly, maintaining operational excellence and financial discipline across the organization. Thirdly scaling our next Generation platforms from capturing new, Enterprise opportunities with private networks to enabling AI at scale and unlocking new revenue streams from our existing assets.

Hans Vestberg: has the assets, the strategy, and most importantly, the team to deliver sustainable long-term growth. We're excited about the opportunities ahead.

Verizon's unique Market position and they essential nature of our services or fundamental to empowering individuals businesses and Society.

Hans: Verizon has the assets, the strategy, and most importantly, the team to deliver sustainable long-term growth.

Hans: We are excited about the opportunities ahead.

Brady Connor: With that, Brady, it's time for Q&A. Thanks Hans.

With that.

Brady, it's time for Q&A.

Operator: Brad, we're ready for questions. Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your touchtone phone. Please unmute your phone and record your name clearly when prompted. Your name is required to introduce your question. If at any point your question has been answered or you would like to withdraw your request, you may remove yourself by pressing star 2. One moment for the first question.

Hans: Thanks hands. Brad Reay for questions.

Thank you. We will now begin the question and answer session.

Hans: If you would like to ask a question, please press star 1 on your touchtone phone. Please unmute your phone and record your name clearly when prompted your name is required to introduce your question.

Hans: If at any point your question has been answered or you would like to withdraw your request. You may remove Yourself by pressing star 2,

Hans: 1 moment for the first question.

Ben Swinburne: The first question will come from Ben Swinburne of Morgan Stanley. Please go ahead, sir. Thank you. Good morning.

The first question will come from Ben swinburne of Morgan Stanley. Please go ahead sir.

Operator: I want to ask about free cash flow, kind of capital allocation, and then also the outlook for consumer wireless. Yeah, thanks so much. Yeah, thanks, Ben.

Thank you. Good morning. Uh, I want to ask about free cash flow kind of capital allocation and then also the outlook for Consumer Wireless,

Hans: Um, hands and Tony. You guys have, you know, meaningfully more cash flow to play with. Now, I know you said a billion and a half to 2 this year. I think these tax benefits continue, you know, beyond 25. What, what's the best use of incremental Capital at Verizon from your perspective. I know you laid out your priorities, but can you help us think about

Hans: Your uh, your ambition to get to buy back sooner. Build more fiber faster, etc, etc. And then on the consumer Wireless front, um, should we still expect consumer? Uh, net, add Improvement, uh, post-paid net, add Improvement in 2025 versus 2024. I don't think that was reiterated on the prepared remarks.

And maybe you could talk a little bit about the churn Outlook in the second half, where you'll be, moving beyond the price increases and so whether we should still be expecting kind of churn normalization. Thanks so much. Uh, thank you.

Hans: Just thought with the capital allocation. Uh, I think your comments and and, and and the question there is more than valid. Uh, as you saw, we raised our guidance for, uh, free cash flow. Uh, partly because of our, uh, cash flow from the from operation is, is improving, but also, the tax reform that we indicate that our Market is uh, I as I said before, I mean our our Capital location

Hans: Charges or, uh, on on changed. I mean, it's first of all in, in our business and we have increased the capex this year compared to 2024 the dividend. Of course, 18 years of increase. We want to put the board in a position to continue to grow. We pay down our debt. We pay down our debt again with almost 3 billion in the first half. Uh, and then it will be uh, uh, BuyBacks. Now we are in a situation where we we we are just about or in the couple of months from now in the beginning of next year, closing from here. So what I said in my prepared remarks is I want to get a holistic view on all the capital allocation. I mean how we going to uh invest in fiber. What synergies we see how we're going to do the capital allocation priorities but clearly uh the tax reform is is helping us uh, to get faster to to the priority to have. So we feel good about that but let me come back to that so I can we can give you a holistic view on Capital allocation but clearly

We we are very excited about Frontier of the performance is great. The sooner this uh are great and of course, the convergence and the fiber opportunities are also great, so very excited for that. And so forth, Frontier has performed really good uh on the on the uh Wireless consumer. I

I think that our ambition as was outlined by, uh, sample in the beginning of year, doing better, this year is still valid. I mean, it's no difference on that. However, we're going to continue to be very financially disciplined for us. Uh, we will not sacrifice our financials, but you still getting uh, uh, net ads. If it doesn't make sense, if it's too expensive, you saw us in the fourth quarter last year being aggressive, because we saw the opportunities of creating and gaining a lot of high quality customers uh used to work gross ads in the second quarter. So it all depends where the market is. And where we go, but ultimately our, uh, uh, our, our, our, our goal is to increase our service revenue, and then, uh, uh, expand our RV and cash flow that are main kpis.

624, uh, that now is twiddling going through our our system, all our AI empowered customer service, uh, uh, uh, impacting. So very encouraged about what the team is doing and how they are working on the loyalty and, uh, uh, retention of our customers. So that's all.

Hans: It's been Tony, will I mean, on all 3, I guess. Yeah, thanks. Good morning been so a couple things on churn. Uh, yeah. Obviously we're focused on reducing churn and, and the financial discipline Manner, and it's hard to mention. We have a great value proposition with the Verizon value guarantee. And also uh, my business on the business side, you know, we have further uh deployment of CB band. We said we're going to get to 80 to 90% of uh CB band this year deployed and we see lower churn where where C band is deployed. And then the work that Hans mentioned on customer experience, we did a CX launched on June 24th and that work is also augmented by Ai and we expect to see improvements there. And then obviously convergence uh, will also uh, reduce Mobility churn. And the team has the retention tools to get there and their uh and their focus on it and then 1 other comments, just on on tax reform. As you your question around looking ahead, uh we're not going to guide on on 2026 but the the extensions of bonus and and R&D are permanent. So, while we won't guide on 26, I would expect that the uh

The, the impacts in 2026 would be significant.

Operator: Brad, we're ready for the next question.

John Hodulik: The next question comes from John Hodulik of UBS. Your line is open, sir. Great, thanks. Good morning, guys. Two, if I can.

Hans Vestberg: First, looks like you saw further deceleration in postpaid ARPA growth. Can you just talk a little bit about the drivers that are causing that deceleration? And then a follow up on one of the comments, you know, upgrade rates in the teens in the first half, and you expect mid single digits for the year, what's the driver of the, what would suggest to be pretty rapid deceleration in the upgrades? Thanks. Thank you. On the post-paid ARPA, I think, again, I mean, we have been growing our ARPA for a long time, and we continue to. We have many levers in there, all the way from our broadband, my step-ups, only 50% of our customers on my plan.

Great. Thanks. Good morning, guys. Uh, 2 if I can. Uh first uh, looks like you saw further deceleration in postpaid arpa growth. Um, can you just talk a little bit about the the the drivers that that are causing that deceleration? And then a follow-up on 1 of the comments? Um you know upgrade rates in the teams in the first half, but do you expect it mid single digits for the year? What what's the driver of the? What? What would

The just be pretty rapid. Deceleration in the upgrades. Uh, thanks.

Hans Vestberg: We have the adjacent services. You heard when we had our prepared remarks on our perks, basically doubling this year up to 50 million perks. So we have a lot of drivers for it. So we still believe that we have a good run rate on that.

Uh, thank you on the uh, post page or part. I think. Uh, again I mean we have been growing our, our puff for a long time. Uh, and we continue to do. We have many levers in there, all the way from our broad band. My step ups only 50% of our customers on my plan. We have the adjacent Services. You heard when we have our prepared remarks on our on our, uh, uh,

Tony Skiadas: On the upgrades, as you articulated, we have been down eight quarters of the last nine when it comes to upgrades for many reasons. This quarter, we put in, first of all, a couple of incentives for customers to upgrade. So that's what we saw a little bit higher. But remember, when we talk about the mid-signature, that's both business and consumer. That's the total investment we're having in upgrades. Yeah, and then just a couple other points on the upgrades. I mean, we absorbed the higher upgrades, but the upgrades were up 30% year over year, and we still produced strong EBITDA and cash flow in the quarter.

Hans: On our perks, basically doubling this year, up to 50 million perks. So, we have a lot of drivers for it. So, it it, we still believe that we have a good run rate on that, uh, on on the, uh, upgrades. Uh, as you articulated. We, we have been down 8 quarters of the last 9 or when it comes to upgrades for

For many reasons this quarter we put in first of all, a couple of uh uh incentives for for customers to upgrade. So that was so that's why we saw a little bit higher. But remember when we talked about the mean you did, is that both business and consumer. That's a total, uh, investment. We have in, in growth, in in upgrades.

Operator: So, you know, we had good operating leverage across the board there. Great, thank you. Okay, yeah, thanks. Thanks, John.

Yeah, and then just a couple other points on the upgrades. I mean, we absorb the higher upgrades but the upgrades are up 30% year-over-year and we still produce strong Ava and cash flow in the quarter. So uh, you know, we had good operating leverage across the board there.

Sebastiano Petti: We're ready for the next question. The next question comes from Sebastiano Petti of J.P.

John: Great, thank you. Okay, yeah. Thanks. Uh. Thanks John for wait for the next question.

Sebastiano Petti: Morgan. Your line is open, sir. Hi, thanks for the question.

The next question comes from Sebastiano, Petty of JP Morgan. Your line is open sir.

Sebastiano Petti: Just to follow up on Ben and John's theme there for a second, as we think about the consumer net ad results in the quarter, any way to unpack maybe free line contribution interquarter? I know that was a below the line offer that was in market, as well as anything to, you know, quantify or read through from the deceleration and core prepaid down, you know, pretty materially, sequentially, is there any migration activity within, within the quarter there? And then lastly, on the frontier deal close, you said early 2026, is that implying a later than expected close versus 1Q26?

Hans Vestberg: Was the previous guidance given maybe, you know, some utility commission reviews that are ongoing out there? Thank you.

Hans Vestberg: No, we can start with the frontier. No, nothing has changed. It's on the plan, we said, actually, since we announced the acquisition. So it's the first quarter of 2026. So nothing has changed on that. And then on any particular things on our net ads, first of all, we had a great growth ad. I mean, the team did a great job, our sales channels were working with our product is resonating with the market. The free lines was insignificant, it was part of the 624 launch. And it just was on for a very short time period, and it's off right now.

Hi, thanks for the question. Um, just to follow up on Ben and John's theme there for a second. As we think about the consumer, uh, net, add results in the quarter anyway to unpack. Maybe free line contribution and record. I know that was a below the line offer that was in Market as well as you know, anything to, you know, quantify or read through from the deceleration Court prepaid down, you know, pretty materially sequentially. Is there any migration activity within within the quarter there? Um, and then lastly, on the frontier deal close, you said early 2026? Is that implying a later than expected close versus 1 Q. 26 was the previous guidance given maybe, you know, some Utility Commission reviews that are ongoing out there. Thank you know, we can start with the, the frontier know, nothing has changed its on the

Hans Vestberg: So that had nothing to do with it. It was a really good execution by the team.

John: Plan. We said actually, since we announced the acquisition, so it's the first quarter of 20 2026. So nothing has changed from that. Uh, and then on any particular things on our net adds. First of all, we had a great growth ads. I mean, the team did a great job. Our sales channels were working. We our product is resonating with the market, the free lines was insignificant, it was part of the 6240, then it's off right now so that had nothing to do with it. It was a really good execution by the team.

Hans Vestberg: And then on prepaid, as you can see, the segmentation strategy is working, and, you know, the operational rigor now that we have is paying dividends, and we have four straight quarters of growth in our prepaid business, and we're seeing good results across all of our main brands, whether it's straight talk, visible, or total wireless, and we continue to scale the distribution there. And the other thing I want to point out on prepaid is now that we have four straight quarters of volume growth, we've reached an inflection point, and we now expect prepaid will be a contributor to service revenue growth in the second half of 2025.

Hans Vestberg: So we feel good about the progress and the momentum we have in the prepaid business.

Sebastiano Petti: Just a quick follow up there, within prepaid to postpaid migrations, the 19% increase in gross additions in the quarter, would that reflect any migrations across the base? No, not significant for us. Thank you. Okay, yeah. Thanks, Sebastiano.

John: And then on the on prepaid, uh, as you can see, the segmentation strategy is working and and, you know, the operational rigor now that we have is paying dividends and we have 4 straight quarters of, uh, of growth in our prepaid business and we're seeing good results across all of our main Brands, whether it's straight, talk visible, or total Wireless and we continue to scale the, uh, the distribution there. And the other thing I want to point out on prepaid is now that we have 4 straight quarters of volume growth. Uh, we've reached an inflection point and we now expect prepaid will be a contributor uh, to service Revenue growth in the uh, in the second half of 2025. So we feel good about the progress and the momentum we have in the in the prepaid business.

Speaker Change: Just a quick follow-up there within prepaid to postpaid migrations the 19% the 19% increase in Gross additions in the quarter. Would that reflect any migrations across the base know? It's not significant for us.

John: No, thank you.

Jim Schneider: Brad, we're ready for the next question. The next question comes from Jim Schneider of Goldman Sachs. Please go ahead, sir. Good morning. Thanks for taking my question. I was wondering if you'd maybe broadly comment on the broadband market trends that you're seeing right now. I think you talked about a softer move environment. But what are you seeing in terms of the gross ad environment more broadly across both fixed wireless and Fios heading into the back half of this year? Any change in competitive dynamics that would make you feel more or less confident about your ability to sustain better net ad additions in the back half?

Okay. Yeah, thanks Sebastiano. Brad, we're ready for the next question.

The next question comes from Jim Schneider of Goldman Sachs. Please go ahead, sir.

Jim Schneider: Good morning. Thanks for taking my question. I was wondering if you could, maybe broadly comment on the Broadband market trends that you're seeing right now. Um, I think you talked about a softer movement, but what are you seeing in terms of, uh, the growth ad, environment more broadly across both fixed Wireless and FiOS heading into the back half of this year, any change in, uh, in in competitive dynamics that would make you feel, you know, more or less confident about your ability to, uh, sustain.

Hans Vestberg: And specifically, can you maybe comment on your expectation for fixed wireless ads and whether they can improve and recover heading into your end? Thank you. Thank you, Jim. When it comes to broadband the first half year, Fios has been fairly consistent. But of course, what we saw here in the second quarter was a way lower mover market. I mean, still the product is the best product out there. The churn is very low, performing really well. On the fixed wireless access, it's the same phenomena we talked before. As we go suburban and rural to the 80%, 90% of C-band, that's where we create the opportunities for fixed wireless access as is the secondary business case on our build.

Hans Vestberg: And that means that we have less passing. So whatever we call it in fixed wireless access world, we have less open for sale. So that's very natural.

Hans Vestberg: If I look into the second quarter, I'm pretty certain we will do better on broadband in the second half this year than we did in the first.

Jim Schneider: Better growth better now that additions into the back half and specifically, can you maybe comment on your expectation for fixed Wireless ads and whether they can improve and recover heading into your end? Thank you. All right. Thank you, Jim. Uh, uh, when it comes to Rob on the first half year, I mean, 5 years has been fairly consistent, but of course, what we saw here in the third in the second quarter, was a way lower mover Market. I mean, still the product is the best products out there. The churn is very low performing really well on the fixed ones axis. It's the same phenomena we talked before as we go, suburban and Rural to the 189% of C band, uh, that's where we create the opportunities for fixed files access. As is the secondary business case on our build, uh, and that means that we have less passing. So, whatever we call it in fixed wireless access world where we have a less open for sale so that's very natural. If I look into the second quarter, I'm pretty certain we will.

Do better on Broad but in second half this year. Uh then we did in the first

Hans Vestberg: And maybe could you just comment on, you know, the status of your MDU rollout? I know it's in trial phases right now, but would you expect that to be a significant contributor as we head into 2026? So the MDU solution, which is the words first, you know, again Verizon is leading with a solution that nobody else has done. That is more than trials right now, even though it's a smaller scale where in many states we start rolling it out. We want to have a short time period between we have the product and we talk to the landlords.

And, and maybe could you just comment on, you know, uh, your the status of your MDU roll out. I know it's in trial phases right now. But would you expect that to be a significant contributor as we head into 2026? So the MDU solution which is the world's first, you know, again, the Verizon is leading with the solution that nobody else has done. Uh, that is more than trials right now, even though it's a smaller scale, where in many states,

Hans Vestberg: It's going to start scaling even more in the second half. I think it will be a bigger contributor in 2026 than in 2025. But it's a great product that can get very, very good broadband services all the way up to one gig, which is something extraordinary that the guys have been doing. But we will scale to see that we have the highest quality that Verizon is known for and is our trademark. Thank you. Yeah, thanks, Jim.

Jim Schneider: Uh, we start rolling it out and we want to have a short time period between we have the products and uh, and we talk to the landlords uh, it's going to start scaling even more in the second half. I think it will be a big contributor in 26, then in 25, but it's a great product uh, that can get very, very good Broadband Services all the way up to 1 gig uh which is uh something extraordinary that the guys have been doing. But we will escape to see that we have. The highest quality that Verizon is is known for and is our trademark

Mike Rollins: We're ready for the next question. The next question comes from Mike Rollins of Citigroup. Please go ahead. Thanks, and good morning. Two topics, convergence and then EBITDA. So first, on convergence, curious if you could share an update on how Verizon's progressing with the uptake of these converged bundles within the base. And if you can share how Verizon is looking to differentiate your converged offers versus the competition. And then on EBITDA, you referenced that it was up 4% in the second quarter, first half, and that's better than the guidance range of 2.5 to 3.5. So can you unpack within the full year guidance what you're anticipating for the rest of the year and what are the factors that would put you at the high end versus the low end of that range?

Brad: Thank you. Yeah. Thanks Jim, Brad, right. For the next question.

Speaker Change: The next question comes from Mike Rollins of Citigroup. Please go ahead.

Mike Rollins: Thanks and good morning, uh, 2 topics, uh, convergence and then uh, ebita. So first, um, on convergence curious, if you could share an update on how Verizon's progressing with the uptake of these converged bundles within the base,

Hans Vestberg: I can start and then I'm going to hand it over to Tony. But on the convergence, I think that, of course, our main key differentiator is that we have owners economics on mobility and broadband. We have the biggest mobility base, and we're now adding our fiber base with Frontier. So we're going to have an unparalleled opportunity for convergence, that our customers have a chance to work on both. And as I said before, we have a very high degree on our broadband net ads per quarter that are already converged. So it's more about when we're going to scale that opportunity, we have even more chances.

And if you can share, how Verizon is looking at, differentiate your converged offers versus the competition and then on ibitta you reference it it was up 4% in the second quarter first half and that's better than the guidance range of 2 and a half to 3 and a half. So can you unpack, um, within the full year guidance, like what you're anticipating for the rest of the year? And what are the factors that would put you at the high end versus the low end of that range?

Tony Skiadas: And if you think about coming into the Frontier footprint, when that's approved, we have a huge opportunity for convergence. So we're excited over that. And that's our offering. And on EBITA, first, before Tony says something, I think you see right now our leverage, the cost takes out we've done, the growth we're doing, and it's falling straight down to bottom line. And what we've said is volumes are important, but we're going to stay disciplined in our approach and in support of the three measures that Hans mentioned, service, revenue, EBIT, and free cash flow. And we'll pulse in, pulse out where it makes sense, but we're not going to chase unprofitable growth for the sake of net ads.

So it's more about when we going to scale that opportunity, we have even more chances. And if you think about coming into the frontier footprint, when that's approved, we have a huge opportunity as as for a convergence. So we're, we're excited over that and that's our offering and on the beta first before Tony, say something, I think you see, right now, our leverage the cost takes out. We have done the growth we're doing and it's falling straight down to bottom line. And we will continue the focus on that. As I said, so many times before, before the whole executive management, and the whole company had 3 kpis. It's the service Revenue, uh, uh, growth and then it's a b 10, cash flow, uh, uh, generation. So very, very, very, very good, sort of the year

Speaker Change: Thanks Aunt. Hey Mike. Uh, so on the IBA, we were up over 500 million in a quarter and about a billion dollars of EA growth, the year to date. And that's, uh, also in light of having a pretty significant upgrade activity, uh, mostly driven by the launch of our value guarantee. And we stayed very disciplined in the quarter. We didn't chase volumes and, uh, and they gave us the confidence that resiliency in the business, gave us the confidence to raise the guide, and it starts with the top line, revenue and service revenues up 2.4% year to date. Uh, so we're seeing great operating leverage as Hans mentioned and there's a lot of work going on on the cost side of the house to continue to make the business a lot more efficient in serving customers day in and day out.

Speaker Change: If you think about the customer care and the work we launched on June 24th that that includes having AI uh enabled. Uh, customer care managed Services. We're seeing great progress. Now uh with the managed Services uh work that Kyle and the team were doing. And we're seeing good savings here. Ramping up in, in 2025, the network team continues to take out cost and Legacy Network elements that that includes copper decommissioning and that work is ongoing and then even in Business Wire line, we continue to deemphasis and stay very disciplined there. And then from headcount standpoint the voluntary separation program is now behind us and we're seeing a full run rate benefit uh for the balance of the year. So, uh, you know, there's really no no assumption changes in in upgrades, as you asked before, uh, we said mid single digits for the full year that still stays intact and what we've said is volumes are important, but we're going to stay disciplined in our approach and in support of the 3 measures that Hans mentioned, service Revenue, but in free cash flow and uh you know, we'll pulse and pulse out or it makes sense.

Tony Skiadas: But very pleased with the progress on EBIT on the first half of the year, and very comfortable raising the guidance for the back half.

Speaker Change: Uh but we're not going to chase on profitable growth for the sake of net ads. So uh but very pleased with the with the progress on uh, on Ava on the first half of the year and very comfortable, raising the guidance for the back half.

Operator: Thanks. Yeah, thanks, Mike.

Operator: Brad, we're ready for the next question.

Cut Gun Morale: The next question comes from Cut Gun Morale of Evercore ISI. Please go ahead. Good morning, and thanks for taking the question. I want to ask about your wireless go-to-market strategy. I know you pulse in and out of the market, Tony, just like you said, but looking through some of your postpaid offers in the second quarter, at times, there seemed to have been a bit more promotional activity on the device side targeting the value end. Over the last few years, you've expanded your portfolio into segments that you target with track phone and fixed wireless, for example, but the value end had historically been perhaps less of a focus on the postpaid side.

Speaker Change: Thanks. Yeah, thanks Mike. Uh, Brad. We're ready for the next question.

The next question comes from Cut gun morale of evercore, isi. Please go ahead.

Hans Vestberg: So I was curious if this was more of an opportunistic tilt that was specific to the quarter, or if it's part of a more strategic shift in the way that you expect to go to market moving forward. Thank you.

Hans Vestberg: First of all, Sampath and the team, together with our CMO Leslie, have been working really hard to segment up our market, because as we see the market having less and less new customers coming into the market, a segmented approach becomes important. We are running now, I think, eight or nine different brands. All of them have different brand attributes and appealing to different segmentations. So this is sort of a segmented growth strategy we have in wireless for consumer, and that will continue and just refine it and see that we have the right offerings in all the different type of brands we have.

Good morning and thanks for taking the question. I want to ask about your wireless, go to market strategy. I I know you pulse in and out of the market Tony just like you said, but looking through some of your post-paid offers in the second quarter at times, there seemed to have been a bit more promotional activity on the device side targeting the value end over the last few years, you've expanded your portfolio and the segments that you target with track phone and fixed Wireless, for example, but the value end at historically been perhaps less of a focus on the postpaid side. So I was curious if this was more of an opportunity to tilt that was specific to the quarter or if it's part of a more strategic shift in the way that you expect to go to market. Um, moving forward. Thank you.

Kut Gunmorale: first of all,

Hans Vestberg: I would say some of the brands are doing extraordinarily well. I mean, total wireless, visible, very good, very targeted. Some of them have some sort of promotions. Some of them are just having a service fee. So it's very different, and you're going to see us continue doing that work, because that is part of our growth story, that we can actually meet any consumer with different economical background with the service. And as you can see in this quarter and the previous quarters, we were actually excited about those opportunities.

The, with the RCM Mo Leslie have been working really hard to segment up, uh, our market. And because, uh, as we see the market, having a less and less new, uh, customers coming into the market, the segmented approach becomes important and we are running now. I think 8, or 9 different brands. All of them have different brand attributes and appealing the different segmentations. So this is a sort of a segmented growth strategy. We have in in in in, in Wireless for Consumer and that will continue uh, and just refine it and see that we have the right offerings in all the different type of Brands. We have, uh, I would say some of the brands are doing

Kut Gunmorale: Throw it in there. Well, I'm a total Wireless visible. Very good, very targeted. Some of them have some sort of promotions. Some of them are just, uh, uh, uh, having a service fee. So, uh, it's very different and you're going to see us continue doing that work, because that is part of our growth story that we can actually meet any, uh, consumer with different economical background with the service. And as you can see in this quarter and the previous quarters we, we were actually excited about those opportunities.

Operator: Great, thanks Hans. Yeah, thanks Cook and Brad, we're ready for the next question.

Frank Louthan: The next question comes from Frank Louthan of Raymond James. Please go ahead. Great, thank you. Can you talk to us about the pace of the fixed wireless deployment? Are you seeing that increase, doing more investment there, or is that kind of staying the same? And then can you characterize the promotion activity in July? Do you think that's going to be similar this quarter with seasonality? How should we think about that? Thanks. Thank you. On the pace on fixed wireless access, that's not changing at all. I mean, we are gearing up for reaching 80-90% of C-band this year, and that's where we followed through with our fixed wireless access opportunities.

Great, thanks hands. Yeah. Thanks. Uh cooking uh Brad away from the next question.

Speaker Change: Please go ahead, sir.

Speaker Change: Great. Thank you. Um, can you talk to us about the pace of the fixed Wireless deployment? Are you seeing that increase? I'm doing more investment there or is that kind of staying the same? And then, can you characterize the promotion activity, uh, in July? Do you think that's going to be similar to this quarter with seasonality? Um, uh, how should we think about that? Thanks.

Speaker Change: thank you on the

Hans Vestberg: And by next year, we're going to have basically built all our C-band on top of the grid we defined from the beginning. And after that, we can always debate how we're going to continue to allocate capital. But right now, we allocate capital for mobility for the simple reason that where we build the C-band, we have better step-ups, we have better upgrades from our customers. So that's the number one. But let us finish this, and then we're going to see. But the pace has not changed. It's the same C-band build-out. What you see on the CapEx is actually also an efficiency work.

Hans Vestberg: We're doing everything that was planned for 2025 right now, but we do it more efficiently. The network team is doing a great job, actually creating efficiencies on the CapEx. And that's very important for us going forward when we're also going to have frontier inside. Got it. Thanks, Frank.

We we are, we are gearing up for reaching 18 and 90 this year. Uh, and that's where we followed through with our fixed wise access opportunities. And by next year, we're going to have basically built all our C band on top of the grid. We defined from the beginning. Uh, and after that we can always debate how we're going to uh, going to continue allocate Capital. But right now, we allocate capital for Mobility for the simple reason that where we build the C band, we have better step UPS, we have better upgrades from our customers. So uh, that's the number 1 but let us finish this and then we're going to see but the pace has not changed the same C band build out. Uh, what you see on the capex is is actually also an efficiency work. We're doing everything that was planned for uh 25 uh that uh right now, but we do it more efficient, the team. Uh the network team is doing a great job. Uh actually great creating efficiencies on our on our capex and that's very important for us going.

Speaker Change: Forward when we were going to have Frontier inside.

Operator: Brad, we're ready for the next question.

Craig Moffett: The next question comes from Craig Moffett of Moffett Nathanson. Please go ahead. Hi. I want to follow up to Ben's first question where you talked about capital allocation. Under the new budget or the one big beautiful bill, there is an expectation of significant spectrum sales even though the spectrum hasn't been identified.

Brad Reay: Yep, got it. Thanks Frank. Uh, Brad Reay for the next question.

The next question comes from Craig Moffat of Moffett Nathanson. Please go ahead.

Hi. Um, I want to follow up to Ben's first question, where you talked about uh, Capital allocation, um, the under the new, uh,

Hans Vestberg: Can you just talk a little bit about that as to how you would prioritize spectrum purchases if there's either a government option or alternatively if private market spectrum comes available from Echostar as to how that might affect, for example, your discussion about possible share buybacks? Thank you. When it comes to spectrum, I mean, I think that what we have, we're sitting on a really good position on spectrum, and we don't see bad millimeter wave or low band. And that's what you see are deploying right now. So we feel good about where we are with spectrum.

Budget or the the 1, big, beautiful bill. Um, there is a expectation of significant Spectrum uh, sales even though the the Spectrum hasn't been identified, can you just talk a little bit about that, um, as to how you would prioritize Spectrum purchases. Uh, if there's either a Government auction or alternatively, if uh, if private Market Spectrum, comes available from Echo Star as to, how that might affect. For example, your your, your discussion about possible share BuyBacks

Brad Reay: Thank you. Uh, uh

Hans Vestberg: Then I've said all the time that the US over time needs more spectrum, especially as 6G comes up, etc., in order to stay competitive and being the most digitalized country in the world. So we're, of course, thinking it's good, that's part of the deal. But as you rightfully said, it still needs to be boxed out. It has to be free up spectrum and all of that, and that will take some time.

When it comes to Spectrum. And I think that what we have, we we are sitting on a really good position on spectrum and we do see you buy mm where you are low band. And that's what you see are deploying right now. So we feel good about where we are with Spectrum. Then I've said all the time that the us all the time needs more Spectrum especially at 60 comes up Etc. In order to stay competitive and being the most digitalized country in the world. So so we we we're of course thinking is good. That's part of the bill but that you're rightfully said it.

Hans Vestberg: When it comes to, in general, capital allocation of spectrum, we always do the build versus buy. I mean, we have done it way before I joined. We look into, will this buy the spectrum being better than building on our own spectrum today? That's the comparison we're always going to do when we see spectrum in the market. But again, we feel good about the position we have, and we are encouraged that the government is planning over time to bring more spectrum to the market for the competitiveness of the United States of America. Thank you. Yeah. Thanks, Craig.

Still need the box and how it has to be free up your spectrum, and all of that and that will take some time. Uh, when it comes to in general a capital location. The Spectrum, we always do the build versus buy. I mean, we have done it way before. I joined we look into will this uh uh uh. Buy the Spectrum being better than building on it uh, on our own Spectrum today. That's the comparison of all is going to do when we see Spectrum in the market. But again, we feel good about the position we have, uh, and we are encouraged that the government is planning over. Time to bring more Spectrum to the market for the competitiveness of the United States of America.

Michael Funk: Right for the next question. The next question comes from Michael Funk of Bank of America. Please go ahead. Yeah, hi, good morning. Thank you for the question. So on postpaid phone subscriber acquisition cost, what are you seeing for the increase in acquisition cost year over year? And then what are you modeling for second half? And what's the right mix of budget for retention versus acquisition? You know this is close to how we work constantly between Sampath, me, and Tony, seeing that we have an envelope for the full investment of customers, which is including acquisition, retention, and media.

Thank you. Thank you. Yeah. Thanks. Uh, Craig Wright from the next question.

The next question comes from Michael Funk of Bank of America. Please go ahead.

Yes. Hi. Good morning. Thank you for the question. So, on postpaid phones. Subscribe acquisition cost. What? What are you seeing for the increase in acquisition cost year-over-year and then what are you modeling for second half. And what's the right mix of budget for retention versus acquisition?

Brad Reay: Close to.

Hans Vestberg: To give you an exact number, that wouldn't be appropriate. But I think that what you should be feeling confident about is that we weekly think about what is the best allocation that we get the best return on investment on the LTV and getting the right customers to over retention or acquisition. So that is a fluid work we're doing constantly, and we have improved this dramatically over the years. Before it was an overall budget. Now it's a much more dynamic, but we stay within the financial discipline we have, so we're not overshooting on anything. Yeah, great.

Brad Reay: With you on anything.

Operator: Thanks, Mike.

Operator: Brad, ready for the next question. Yeah, thanks, Greg. Brad, we're ready for the next question.

Yeah, great. Thanks Mike uh Brad. Ready for the next question?

Speaker Change: The next question comes from Greg Williams of TDC, please go ahead.

Uh, great thanks for taking my questions. Um, first 1's, just on, on the consumer phone gross ads. Uh, you guys said you're disciplined and not chasing volumes but it's up. 19%. Um, I think that's a 2q record. How sustainable uh, is this level of growth ads uh going forward in the balance of the year? Um, and the second question, just on the customer experience that you guys launched on June 24th cuz you're talking it up quite a bit here and wanted to get more color on on what it is in the specifics. And you mentioned, you know, AI enabling customer care Etc. So any color there would be great. Thanks.

Speaker Change: Okay, sure. Uh, on the, uh, Greg out, the on the growth, adds a couple things here. The strength came from 2, 2 places first, uh, we had very strong, uh, sales execution in our stores and distribution. The team did a great job, and then, secondly, the value proposition. When you think about, uh, we launched the best value, uh, guarantee back at the beginning of April, and that is resonating, uh, with customers in the market, and we see a healthy mix of new to Verizon in the quarter. And we're also writing good business as well. And what we said many times is, you know, volumes are important. And, uh, we'll pulse in and pulse out but where it makes Financial sense. So, um, and then, as we said earlier, the biggest opportunity for us is loyalty and retention and the team is focused on it. Yeah. And if we talk about what was loan 6/24, I think that it was

A lot of AI, uh, supported customer experience. Uh, uh, tools. We put in, I mean, first of all, uh, uh, when it comes to the process, we now will have a customer care. Customer care. Employee following. Uh, uh, uh, any, uh, uh, request or a complaint from our customers all the way. So, we actually finish it out with the, with the same person starting in MD, and also having update. That's what's the concern for our customers, that we heard through the year, and that we needed to improve. The other thing is, we also opening up our customer service 24 by 7, very important. Again, that was a feedback that people are having different work hours. They want to call different times. We're going to fix that. Uh, and then, of course, we're giving our customer care employees an AI tool so they can treat our customer better and know their problems better uh because this could be stressful. We know that having the connectivity is such an essential service Mobility improve

Well done. And then the last thing we're going to leverage even more our stores. I mean we we 93% of the US population has less than 30 minutes to a Verizon store. We're going to leverage that more see that that's going to be a place where you can get more support and help as well. So will leverage all the assets and all our employees to see that we're treating our customers better and I think it's an area, we can excel in and that then then we basically have worked a lot on our products side where we have my plan, my best, my home, all of that with perks, which is really

And anything we have worked on a brand that we refresh the brand last year, and that is actually going really good as well. And the network is, of course, the best network in the market that once again was proven by GD, power and rootmetrics. So, uh, we're working on all the cylinders how we compete, uh, for any type of customer all the way from Enterprise government, uh, small and medium to prepaid postpaid customers on broadband Mobility. So, it's a holistic thinking how we going to do this. So, thank you for the question.

Speaker Change: Thank you. Yeah, thanks Greg. Right, for the next question.

Peter Supino: The next question comes from Peter Supino of Wolf Research. Your line is open. Hi, good morning, everybody.

Speaker Change: The next question comes from Peter subpoena of wolf research. Your line is open.

Hans Vestberg: A question about costs and one about churn on costs. You mentioned your expectations for continuing cost efficiency, and we see, obviously, headcount is flat year-to-date in your reporting compared to 5 percent improvement or decline in 2024. And so, thinking out medium-term, thinking about 2026, 2027, I wonder if you could describe any opportunities you see for ongoing efficiency gains outside of price increases. And then, on churn, now that we're well past the impact of extended installment plans on consumer churn, what do you think is the cause of today's churn levels? Obviously, your initiatives in June indicate some incremental concern.

Tony Skiadas: And does that trend require less aggressive, less positive price increases in the future? Thanks.

Hans Vestberg: First of all, any future commercial plans, I will not share. That I cannot do.

Hi, good morning everybody. Uh, a question about costs and 1 about churn on costs that you mentioned your expectations for continuing cost efficiency. And we see obviously headcount is flat year to date and year reporting compared to 5% Improvement or decline in 2024. And so thinking out medium-term thinking about 2026 2027. I wonder if you could describe any opportunities, you see for ongoing efficiency gains outside of price increases, uh, and then on churn. Now that we're well past the impact of extended installment plans on consumer churn. What do you think is the cause of today's churn levels? Obviously your initiatives in June indicates some incremental concerns and does that Trend require, uh, less aggressive less positive price increases in in the future? Thanks, uh,

Hans Vestberg: I'll start with the cost. I think that both Tony and I see more cost opportunities than we have seen in a long time, and that's what you see in our leverage right now. And many of the AI solutions we're putting, we talked about them last year, we're putting into our both in the capital planning for our customers, for our employees. That's still not into any cost base for us. The headcount, we have been very, very good, and it's going down all the time. So, we have been very efficient on managing our resources that is handling this market.

First of all, any future commercial plans, I will not share that that I cannot do. Uh, I thought with the cost.

Tony Skiadas: So, very happy with that.

Tony Skiadas: And I hand it over to Tony to talk a little bit more about cost and churn. Yeah, thanks. So, Peter, a couple of things. So, the headcount is down 3.7 percent year over year. And as I said earlier, we had a lot of even a margin expansion in the first half. And we continue to take cost out, whether it's AI, whether it's network. The team continues to take copper out of the network, and that work continues. And whether it's IT or real estate, IT platform consolidation or real estate, we're continuing to push cost out of the business.

Tony Skiadas: And even on business wireline, as I said before, we're being really disciplined at the deal desk. And even on wireless, we're being disciplined at the deal desk as well, and we're not chasing growth for the sake of growth. So, as Tom says, we're operating differently, and we feel good about the cost actions that are driving the EBIT improvements and also the increase in the guide. Thank you.

Speaker Change: Please that will that still not in into any cost cost base for us the head count, we have been very, very good and it's going down all the time. So we have been very efficient on managing our resources. That is, uh, uh, handling this market. So very happy with that. And I hand it over to, uh, uh, Tony to talk a little bit more about cost and insurance. Yeah, thanks. So, Peter, a couple things with the head count down, 3.7% uh, year-over-year. And, uh, as I said earlier, uh, you know, we had a lot of uh, even the margin expansion in the first half and we continue to take cost out whether it's AI, whether it's network, uh, the team continues to take copper out of the network, and that work continues and whether it's it or real estate, uh, it platform consolidation or real estate, you know, we're continuing to push uh, cost out of the business and even our business W line. As I said before uh where we being really disciplined uh at the deal desk. And even on wireless we're being disciplined at the deal desk as well. And we're not chasing grow.

For the sake of growth. So uh, as hon says, we're operating differently and we feel good about the cost actions that are driving uh the ebit improvements and also the increase in the guide.

Operator: All right. Yeah. Thanks, Peter.

Speaker Change: Thank you.

Operator: Brad, we're ready for the next question.

Bryan Kraft: The next question is from Bryan Kraft of Deutsche Bank. Your line is open, sir. Hi, good morning. I just had a question on Bead. With the recent changes in the program, I was wondering how you're thinking about the opportunity to participate and, you know, maybe make some incremental investments into footprint expansion through that program. Thanks.

Brad Reay: All right, yeah, thanks Peter. Uh, Brad Ray from the next question.

The next question is from Brian kraff of Deutsche Bank. Your line is open, sir.

Hans Vestberg: Yeah, there are some slight changes to the Bead program rules, which open up some opportunities for us, of course, and then it's a process of rebuilding. I think that's one area. The other area, of course, we have been building since the first Bead opportunity came up. So the combination of this is probably that we have the same opportunities as we had when the Bead program started. We're going to Bead where we see that we have a good return and with some subsidized from the government. So no major change for us.

Brian Kraff: Hi, good morning. Um I just had a, a question on bead um with the recent changes in the program, I was wondering how you're thinking about the opportunity to participate and um, you know, maybe, uh, make some incremental investments into for footprint. Expansion through that program. Thanks.

Operator: We are in this process right now, so we need to come back to you when we see the outcome of that rebid. Okay, thank you. Yeah, thanks, Bryan. Brad, we have time for one more question.

Dan. It's a process of rebuilding. I think, uh, that's 1 area the other areas. Of course, we have been building since uh, the first bead bead, uh, uh opportunity came up. So the combination of this, probably, that we have the same opportunities as as we had when the bead program started. Uh, we're going to be where we see that we have a good return and with, with some subsidized from the government. So, uh, no major change for us. We, we are in in in these process right now, so need to come back to you when we see the outcome of that rebuilding.

Tim Horan: Your last question will come from Tim Horan of Oppenheimer. Your line is open, sir. Because of the business revenues and margins have improved pretty substantially. Just any more color on what you're doing there? I know you touched on it a little bit, but can you give us a little bit more examples of what's going on? And I guess the key question is, is it secular? And I guess particularly on the margin Thank you. Yeah, it's a lot going on there. I mean, some of you have been following us for quite a while. You know that somewhere in 2023, our performance was not the best.

Okay, thank you. Yeah. Thanks. Uh, Brian, uh, Brad. We have time for 1 more question.

Your last question will come from, Tim haran of Oppenheimer.

Your line is open, sir.

Tim Haran: Because of the business um revenues and margins of improved pretty substantially just any more color on what you're doing there. I know you touched on it a little bit but can you give us a little bit more examples of what's going on? And and I guess the key question is, is it secular and I guess particularly on the margins

Hans Vestberg: We took a lot of decisions, including getting basically a total new management team. Since then, we have been aligning on what we need to do. And you see so many vectors of growth that we didn't have before. I mean, all the way Tony talked about that was zero or negative for us for quite a while. Now, we're basically flat-ish and, of course, expecting that the team is going there. And then we have all the step-up and the segmented growth that I talked about. So the team is executing really good. And in the foundation, we have a great network that we now are sort of capturing all the opportunities with the C-band investment we did for a couple of years ago.

Speaker Change: Thank you. Yeah, it's a lot to go on there and some of you have been following us for quite a while, you know that somewhere in 23, your performance was not the best. We took a lot of decisions including getting basically a total of the new management team since then, we have been aligning, or what we need to do. And you see so many vectors of growth that we didn't have before. I mean, all the way from fiber fixed files access, and of course, the fiber will be added to the frontier of the time you see our AI connect that we talked about on the business side. So then we can uh, leverage our assets on the, uh, on the fixed side. We have the adjacent services that for a couple of years, for a very small, now, with the perks and all of that, we're, we're doubling the growth there. So we have the convergence coming up as well. We have prepaid. That Tony talked about that was zero or negative for us for quite a while now, we're basically flat dish, and, of course, expecting that the team is going there. And then we have all the step up and the segmented.

Tony Skiadas: And that's behind it, a really well-executed and what you should expect from Verizon, which is our trademark.

Speaker Change: Growth that I talked about. So the team is executing really good and in the foundation we have a have a great Network that we now are sort of capturing all the opportunities with the cban investment we did for a couple of years ago, and that's what you see. And then on top of that, with the discipline from Tony and the team, we're taking out cost and then you see the leverage and sometimes we just underestimate what great businesses is. I mean, it's it's an enormous business, uh, when it comes to revenue and and, and subscriber base Services, uh, and the generational cash is is extraordinary. We will just continue to drive that and see that we we have the right offerings for our customer, but that's what's behind it. A really well executed and what you should expect from Verizon. Uh, which is our trademark

Tony Skiadas: Thanks, and Hans, just a couple of things to add, Tim, on the business segment. You know, the team continues to grow volumes, both mobility and FWA, and the business continues to skew more wireless, which is great to see. And we said the goal was to improve the EBITDA profile in this segment, and we saw really good progress in the first half of the year. We have three straight quarters now of growth. So if you look between the revenue and the margins on the revenue side, as I said, more wireless FWA and mobility growing, even though we're growing through even the public sector pressures as well, and we're also seeing contributions from private 5G networks and AI Connect, and that's also offsetting some of the wireline decline that we see.

Tony Skiadas: And then on the cost side, Kyle and the team doing a great job with our managed services transformation, the deal we signed with HCL is providing a lot of benefits this year, and a lot of good discipline in terms of moving customers off of legacy progress, products rather, and deemphasizing low margin deals, and also operating with lower headcount. So, you know, we're well positioned to continue to improve the business EBITDA margins this year. Very happy with the progress. Thanks guys.

We said the goal was to improve the Eva profile uh in this segment. And we saw really good progress in the first half of the year. We have 3 straight quarters now of growth. So if you look between the revenue and the margins on the revenue side, as I said, more Wireless fwa and Mobility growing. Even the growing through even the public sector pressures as well. And we're also seeing contributions from private 5G networks and AI connect. And uh, that's also offsetting some of the, uh, the wiring decline that we see. And then on the cross Side, Kyle and the team doing great job uh, with our managed Services uh uh transformation. Uh, the deal, we signed with hcl's, providing a lot of benefits this year and and a lot of good discipline, uh, in terms of moving customers off of Legacy progress, uh, products rather and the, the emphasizing low margin deals and and also operating with with lower head count. So, you know, we're well positioned to continue to improve the business. Even in margins. This year, we're very happy with the progress.

Operator: Yeah, thanks, Tim.

Operator: Brad, that's all the time we have today. This concludes the conference call for today. Thank you for participating and for using Verizon Conference Services. You may now disconnect.

Brad Reay: Thanks. Yeah. Thanks, uh, Tim Brad. That's all the time we have today.

Speaker Change: This concludes the conference call for today. Thank you for participating and for using Verizon conference Services. You may now disconnect